Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 57600 games last year at a selling price of $62 per game. Fied expenses associated with the game total $1,056,000 per year, and variable expenses are $42 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor Required: 1-a. Prepare a contribution format income statement for the game last year, 1-5. Compute the degree of operating leverage. 2. Management is confident that the company can sell 74,304 gomes next year (an increase of 16,704 games, of 29% over last year) Given this assumption a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree or operating leverage to compute your answer) int Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated, Contribution Income Statement Total Per Unit C Reg 1A Req 1B > Save 5 Required: 1-a. Prepare a contribution format income statement for the game last yea 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 74,304 games ne> Given this assumption: a. What is the expected percentage increase in net operating income for b. What is the expected amount of net operating income for next year? (D operating leverage to compute your answer.) nts eBook Print Complete this question by entering your answers in the tabs below. References Reg 1A Req 1B Reg 2 Compute the degree of operating leverage. Degree of operating leverage +